INR 450 billion retrofitting opportunity across India’s top seven cities 62% of operational office stock requires retrofit interventions. These projects are under single ownership structures, owned by/invested into by either property developers or institutional investors.

The four largest markets by size and occupier activity account for ~81% of estimated capital expenditure for retrofitting Bengaluru, Delhi NCR, Mumbai and Hyderabad comprise the largest share of assets with retrofitting potential. These four markets represent about 75% of occupier activity in the country. Consequently, actions taken by landlords and investors in these markets will be critical for keeping existing assets ‘relevant’.

Retrofitting goes beyond chasing ‘green’ certifications It aims to achieve greater efficiency in building performance parameters while targeting a low-carbon future. Landlords and investors should implement holistic interventions that address both physical and operational aspects of their assets. These interventions should integrate a higher degree of ‘human experience’ within the built environment.

Retrofitting can yield potential rental upside of 15-30% (with respect to current asset rentals) across office clusters while unlocking asset value Post-retrofit rental premiums offer tangible returns, while improved occupancy rates and longer lease terms further enhance the per-square-foot value of assets. Beyond financial benefits, retrofits optimize asset repositioning and maintain asset relevance as regulations trend towards carbon taxation and pricing mandates.

Credit: JLL (India)

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